Avangrid, Inc. (AGR): Business Model Canvas [Jan-2025 Mise à jour]

Avangrid, Inc. (AGR) est à l'avant-garde des solutions d'énergie transformatrices, tissant l'innovation renouvelable, les infrastructures stratégiques et la croissance durable. En équilibrant magistralement la production d'énergie propre, des technologies de grille intelligente et des services centrés sur le client, cette entreprise dynamique remodèle l'avenir de la distribution d'énergie dans les paysages résidentiels, commerciaux et municipaux. Leur toile complète du modèle commercial révèle une approche sophistiquée qui va au-delà des cadres d'utilité traditionnels, positionnant Avangrid comme force pionnière dans l'écosystème énergétique en évolution.

Avangrid, Inc. (AGR) - Modèle d'entreprise: partenariats clés

Services publics et sociétés d'énergie pour la transmission d'énergie renouvelable

Avangrid maintient des partenariats stratégiques avec les sociétés énergétiques suivantes:

Partenaire	Détails du partenariat	Capacité d'énergie renouvelable
Nextera Energy Resources	Collaboration de transmission éolienne et solaire	1 500 MW projets renouvelables conjoints
Iberdrola Renewables	Interconnexion du réseau et infrastructure énergétique	Réseau de transmission partagée de 2 200 MW

Agences gouvernementales des États et fédérales pour la conformité réglementaire

Les principaux partenariats réglementaires comprennent:

• Département des ressources énergétiques du Massachusetts
• Autorité de recherche et développement de l'énergie de l'État de New York
• Commission fédérale de la réglementation de l'énergie (FERC)
• Agence de protection de l'environnement (EPA)

Fournisseurs de technologies pour la modernisation de la grille

Investissements de partenariat technologique:

Fournisseur de technologie	Domaine de mise au point	Montant d'investissement
Siemens	Infrastructure de grille intelligente	75 millions de dollars
Groupe ABB	Transformation numérique	62 millions de dollars

Communautés locales et organisations environnementales

Partenariats d'engagement communautaire:

• La conservation de la nature
• Groupes locaux de durabilité environnementale
• Conseils communautaires des énergies renouvelables

Institutions de recherche pour l'innovation énergétique durable

Collaborations de recherche universitaire:

Institution	Focus de recherche	Financement annuel
Institut de technologie du Massachusetts	Technologies d'énergie renouvelable	4,5 millions de dollars
Université Cornell	Recherche d'efficacité du réseau	3,2 millions de dollars

Avangrid, Inc. (AGR) - Modèle d'entreprise: activités clés

Production d'énergie renouvelable

Avangrid exploite 7,7 GW de capacité de production d'énergie renouvelable à partir de 2023, notamment:

Type d'énergie	Capacité (MW)	Nombre d'installations
Énergie éolienne	6,235	77
Énergie solaire	387	15
Hydro-électrique	1,078	23

Transmission et distribution électriques

Avangrid sert de l'électricité à:

• 1,7 million de clients électriques
• 8 États aux États-Unis
• Réseau de distribution couvrant 4 800 miles de lignes de transmission

Gestion de la distribution du gaz naturel et de l'infrastructure

Détails de l'infrastructure du gaz naturel:

Métrique	Valeur
Clients du gaz naturel	1,1 million
Réseau de distribution de gaz	8 200 miles de pipeline

Développement du programme d'efficacité énergétique

Investissement annuel dans les programmes d'efficacité énergétique: 142 millions de dollars

• Initiatives d'efficacité énergétique résidentielle
• Programmes de gestion de l'énergie commerciale et industrielle
• Implémentation de la technologie de la grille intelligente

Investissement et maintenance des infrastructures durables

Dépenses en capital pour les infrastructures en 2023: 1,2 milliard de dollars

Zone d'investissement des infrastructures	Allocation
Projets d'énergie renouvelable	680 millions de dollars
Modernisation de la grille	320 millions de dollars
Technologie de stockage	200 millions de dollars

Avangrid, Inc. (AGR) - Modèle d'entreprise: Ressources clés

Portfolio étendu des énergies renouvelables

En 2023, Avangrid fonctionne:

• 7.4 GW de la capacité de production d'énergie renouvelable
• Actifs d'énergie renouvelable dans 22 États

Type d'énergie renouvelable	Capacité installée (MW)
Énergie éolienne	6,233
Énergie solaire	687
Hydro-électrique	480

Infrastructure technologique avancée

Investissement technologique: 324 millions de dollars de mises à niveau technologique et d'infrastructure en 2022

• Technologies de grille intelligente
• Infrastructure de mesure avancée
• Systèmes de gestion des réseaux numériques

Travail qualifié en énergie et en durabilité

Métriques des employés	Nombre
Total des employés	7,200
Ingénieurs et professionnels techniques	1,850
Spécialistes des énergies renouvelables	620

Actifs énergétiques géographiques stratégiques

Présence géographique: Opérations dans 22 États américains

• Concentré dans les régions du nord-est et du Midwest
• 8 États avec une infrastructure d'énergie renouvelable importante

Capital financier et capacité d'investissement solides

Métrique financière	Valeur 2022
Actif total	19,4 milliards de dollars
Dépenses en capital annuelles	1,2 milliard de dollars
Investissement d'énergie renouvelable	675 millions de dollars

Avangrid, Inc. (AGR) - Modèle d'entreprise: propositions de valeur

Solutions énergétiques propres et durables

Avangrid génère 7,7 gigawatts d'énergie renouvelable sur les plates-formes éoliennes et solaires à partir de 2023. Le portefeuille total des énergies renouvelables comprend:

Type d'énergie	Capacité (MW)
Énergie éolienne	6,300
Énergie solaire	1,400

Distribution fiable de l'électricité et du gaz naturel

Avangrid dessert 3,3 millions de clients électriques et de gaz naturel dans 8 États, avec des infrastructures couvrant:

• 8 200 miles de lignes de transmission électrique
• 23 000 miles de pipelines de distribution de gaz naturel
• Taux de fiabilité de 99,99%

Empreinte carbone réduite pour les clients

Réductions de carbone:

Métrique	Valeur
Réduction des émissions de CO2	5,2 millions de tonnes métriques par an
Pourcentage d'énergie renouvelable	68% de la production totale d'énergie

Technologies innovantes de modernisation de la grille

Investissements technologiques:

• 1,2 milliard de dollars investis dans la modernisation du réseau
• Déploiement de compteur intelligent: 2,1 millions d'unités
• Systèmes avancés de gestion de la grille

Alternatives à énergie renouvelable rentable

Comparaison des prix des énergies renouvelables:

Source d'énergie	Coût par MWH
Énergie éolienne	$36
Énergie solaire	$40
Combustible fossile traditionnel	$55

Avangrid, Inc. (AGR) - Modèle d'entreprise: relations avec les clients

Plateformes de service client numérique

Avangrid exploite des canaux de service client numérique avec les mesures suivantes:

Plate-forme numérique	Engagement annuel des utilisateurs	Fonctionnalités de service
Portail client en ligne	1,2 million d'utilisateurs enregistrés	Paiement de facture, suivi de l'utilisation
Application mobile	425 000 utilisateurs mensuels actifs	Surveillance de l'énergie en temps réel
Chat de support client	Taux de résolution de 78%	Support numérique 24/7

Consultations personnalisées en matière d'efficacité énergétique

Avangrid fournit des services d'efficacité énergétique ciblés:

• Évaluations d'énergie gratuites: 65 000 réalisés chaque année
• Recommandations d'économies d'énergie personnalisées
• Investissement direct de l'efficacité énergétique des clients: 12,4 millions de dollars en 2023

Programmes d'engagement communautaire

Métriques d'interaction communautaire:

Programme	Participation annuelle	Investissement
Projets solaires communautaires	22 500 participants	8,7 millions de dollars
Ateliers locaux d'énergie renouvelable	4 300 participants	1,2 million de dollars

Facturation transparente et suivi de la consommation d'énergie

Caractéristiques de transparence de facturation:

• Tableau de bord d'utilisation en temps réel: 92% Satisfaction du client
• Rapports de consommation mensuels détaillés
• Analyse de consommation d'énergie comparative

Communication proactive sur les transitions énergétiques

Métriques de la stratégie de communication:

Canal de communication	Atteindre	Taux d'engagement
Envoyez des newsletters	680 000 abonnés	Taux d'ouverture de 45%
Plateformes de médias sociaux	3 canaux numériques	62 000 abonnés
Mises à jour de transition d'énergie renouvelable	Communications trimestrielles	73% de sensibilisation au client

Avangrid, Inc. (AGR) - Modèle d'entreprise: canaux

Portails de clients en ligne

Avangrid fournit une plate-forme numérique pour les clients avec les spécifications suivantes:

Caractéristique du portail	Détails
Utilisateurs en ligne actifs	487 000 clients enregistrés
Transactions de portail mensuelles	2,3 millions d'interactions numériques
Taux d'achèvement du paiement des factures	92,4% via le portail en ligne

Applications mobiles

Métriques d'engagement mobile pour Avangrid:

• Count de téléchargement d'application mobile: 276 000
• Utilisateurs mobiles actifs mensuels: 184 000
• Note de l'App Store: 4.3 / 5

Représentants des ventes directes

Caractéristiques de la force de vente:

Métrique de l'équipe de vente	Quantité
Représentants des ventes totales	342 employés
Coût moyen d'acquisition des clients	87 $ par client
Couverture des ventes annuelle	7 États dans les régions du nord-est et du nord-ouest

Centres de services énergétiques locaux

Distribution du centre de service:

• Centres de services totaux: 23
• États couverts: Maine, Massachusetts, New York, Rhode Island, Connecticut
• Temps d'attente moyen du client: 12 minutes

Plateformes de marketing et de communication numériques

Canal numérique	Métriques d'engagement
LinkedIn adepte	47,500
Abonnés Twitter	22,300
Dépenses annuelles sur le marketing numérique	3,2 millions de dollars

Avangrid, Inc. (AGR) - Modèle d'entreprise: segments de clientèle

Consommateurs d'énergie résidentielle

Avangrid dessert environ 2,2 millions de clients électriques dans plusieurs États, notamment le Maine, le Massachusetts, New York et le Connecticut.

État	Nombre de clients résidentiels
Maine	620,000
Massachusetts	540,000
New York	680,000
Connecticut	360,000

Entreprises commerciales et industrielles

Avangrid fournit des services énergétiques à environ 300 000 clients commerciaux et industriels dans ses territoires opérationnels.

• Distribution d'énergie aux entreprises allant des petites entreprises aux grandes entreprises
• Solutions énergétiques personnalisées pour les secteurs industriels
• Services de gestion de la demande de pointe

Entités municipales et gouvernementales

Avangrid dessert plus de 150 clients municipaux et gouvernementaux avec des infrastructures énergétiques spécialisées et des solutions d'énergie renouvelable.

Type de client	Nombre de clients
Gouvernements municipaux	95
Agences gouvernementales de l'État	35
Entités gouvernementales fédérales	20

Secteur agricole

Avangrid prend en charge environ 5 000 clients agricoles avec des solutions énergétiques spécialisées.

• Systèmes d'énergie renouvelable pour les fermes
• Programmes d'efficacité énergétique
• Solutions de puissance d'irrigation durable

Investisseurs d'énergie renouvelable

Avangrid gère un portefeuille d'énergies renouvelables d'une capacité totale de 7,7 GW dans les projets éoliens et solaires.

Type d'énergie renouvelable	Capacité installée (MW)
Énergie éolienne	6,200
Énergie solaire	1,500

Avangrid, Inc. (AGR) - Modèle d'entreprise: Structure des coûts

Développement et maintenance des infrastructures

En 2023, Avangrid a déclaré un total de dépenses en capital de 1,65 milliard de dollars, avec des investissements importants dans des infrastructures de grille et des projets d'énergie renouvelable.

Catégorie d'infrastructure	Coût annuel (2023)
Maintenance du réseau de transmission	412 millions de dollars
Mises à niveau du système de distribution	536 millions de dollars
Modernisation de la grille	287 millions de dollars

Investissements en technologie des énergies renouvelables

Avangrid a alloué 678 millions de dollars spécifiquement pour les investissements en technologie des énergies renouvelables en 2023.

• Technologie d'énergie éolienne: 247 millions de dollars
• Technologie d'énergie solaire: 215 millions de dollars
• Solutions de stockage d'énergie: 126 millions de dollars
• Technologies d'intégration de la grille: 90 millions de dollars

Frais de conformité réglementaire

Les coûts liés à la conformité pour Avangrid en 2023 ont totalisé 184 millions de dollars.

Zone de conformité	Dépenses annuelles
Règlements environnementaux	87 millions de dollars
Conformité à la sécurité	62 millions de dollars
Rapports et audit	35 millions de dollars

Coûts de recherche et de développement

Avangrid a investi 92 millions de dollars dans des activités de R&D en 2023.

• Recherche sur l'énergie propre: 45 millions de dollars
• Technologies d'efficacité du réseau: 28 millions de dollars
• Projets d'innovation durable: 19 millions de dollars

Formation des employés et développement de la main-d'œuvre

Les frais de développement de la main-d'œuvre pour Avangrid ont atteint 56 millions de dollars en 2023.

Catégorie de formation	Investissement annuel
Formation des compétences techniques	28 millions de dollars
Développement du leadership	15 millions de dollars
Formation de sécurité et de conformité	13 millions de dollars

Avangrid, Inc. (AGR) - Modèle d'entreprise: Strots de revenus

Frais de transmission et de distribution de l'électricité

En 2022, Avangrid a rapporté des revenus de transmission et de distribution d'électricité de 2,14 milliards de dollars. La société exploite des réseaux dans plusieurs États, notamment le Maine, le Massachusetts, New York et le Connecticut.

État	Miles de réseau	Contribution des revenus
Maine	5 600 miles	412 millions de dollars
Massachusetts	4 300 miles	538 millions de dollars
New York	6 200 miles	762 millions de dollars
Connecticut	3 900 miles	428 millions de dollars

Ventes de production d'énergie renouvelable

Avangrid a généré 1,87 milliard de dollars à partir des ventes d'énergies renouvelables en 2022, les projets éoliens et solaires contribuant de manière significative.

• Production d'énergie éolienne: capacité de 2 300 MW
• Production d'énergie solaire: 450 MW Capacité
• Revenu total des énergies renouvelables: 1,87 milliard de dollars

Services de distribution du gaz naturel

Les services de distribution du gaz naturel ont généré 986 millions de dollars de revenus pour Avangrid en 2022.

Région de service	Clientèle	Revenu
New York	272 000 clients	456 millions de dollars
Maine	118 000 clients	272 millions de dollars
Massachusetts	164 000 clients	258 millions de dollars

Revenus du programme d'efficacité énergétique

Les programmes d'efficacité énergétique ont contribué 214 millions de dollars aux revenus d'Avangrid en 2022.

Incitations et crédits d'impôt du gouvernement

Avangrid a reçu 312 millions de dollars en incitations gouvernementales et en crédits d'impôt en 2022, principalement des crédits d'impôt sur la production d'énergies renouvelables.

Type d'incitation	Montant
Crédits d'impôt de production d'énergie renouvelable	287 millions de dollars
Incitations énergétiques vertes au niveau de l'État	25 millions de dollars

Avangrid, Inc. (AGR) - Canvas Business Model: Value Propositions

You're looking at the core promises Avangrid, Inc. (AGR) makes to its customers and the market as of late 2025. These aren't just vague goals; they are backed by concrete infrastructure and capacity numbers, which is what matters for a utility this size.

The most fundamental value is the steady, regulated delivery of power and gas. Avangrid, Inc. provides stable, regulated delivery of electric and natural gas to over 3.4 million customers across its networks business in New York and New England. That's a massive, essential service base that depends on consistent operation.

When it comes to the clean energy transition, Avangrid, Inc. is putting serious capital to work to back up its leadership claims. The company is enhancing grid resilience through a massive $18.5 billion investment plan slated through 2028, aimed at rebuilding aging infrastructure and expanding capacity. This investment is key to supporting future energy needs.

Here's a quick look at the scale of their generation portfolio, which is heavily leaning toward cleaner sources:

Metric	Value as of Early/Mid 2025	Source Context
Total Installed Energy Capacity	10.5 GW	Across 80 operating power plants.
Emissions-Free Installed Capacity	9.3 GW	Primarily wind and solar generation.
Total Energy Generated (H1 2025)	Approx. 13,000 GWh	Enough to power about 2.4 million U.S. homes.

The company is definitely leading the U.S. clean energy transition by building out its renewables portfolio, though we see that the total capacity includes natural gas and fuel cells alongside wind and solar. Still, the commitment is clear in the numbers; they are actively growing their clean footprint.

For your large commercial users, especially those in high-growth areas, Avangrid, Inc. offers specific reliability propositions. They are focused on providing structured energy solutions and risk management, which you see reflected in their current project load:

• Currently involved in 8 active projects powering data centers.
• Has 10 projects providing over 1.5 GW of energy to data centers and AI leaders.
• Has 5 more projects under construction totaling nearly 700 MW for technology and AI firms.

This focus directly addresses the need for a reliable power supply for high-demand sectors like data centers and AI, which are driving much of the current grid investment need. The $18.5 billion infrastructure spend is designed to harden the grid and expand capacity specifically for these growth areas. That's the kind of concrete action that builds customer trust, you know?

Finance: draft 13-week cash view by Friday.

Avangrid, Inc. (AGR) - Canvas Business Model: Customer Relationships

You're looking at how Avangrid, Inc. manages the people who rely on their power and gas-the core of their regulated utility business. For Avangrid, customer relationships are fundamentally tied to meeting mandated service levels, which is a different kind of pressure than pure market competition.

Regulated service model focused on mandated reliability and safety.

The relationship here is one of essential service provision under regulatory oversight. Avangrid's networks business serves more than 3.4 million customers across New York and New England. This service delivery is non-negotiable, meaning reliability and safety are the primary customer value propositions, especially as the sector faces load growth pressures. To be fair, maintaining this trust is harder when projections show residential electric rates could climb between 15% and 40% over the next five years. That puts a spotlight on every outage and every service interaction.

Digital engagement via mobile apps and energy management tools.

Customers are definitely interacting with Avangrid through digital channels more than ever before. This shift drives the need for seamless self-service options. You see this focus in the ongoing development and promotion of their mobile application suite and various energy management tools offered to help customers control usage and costs.

• Focus on mobile app adoption.
• Integration of energy management tools.
• Leveraging AI for service improvements.

Customer Experience and Digital Center of Excellence for service improvement.

Avangrid established its Customer Experience and Digital Center of Excellence in 2023 to consolidate strategy across digital product development, marketing, and journey redesign. Since its formation, this dedicated cross-functional unit has demonstrably increased customer satisfaction and reduced hold times for customer calls. The September 2025 Digital Summit, themed "Unlocking AI," shows a commitment to using advanced technology like artificial intelligence and machine learning to solve challenges specifically in customer service and smart grid operations.

Community engagement through local non-profit sponsorships (over $200,000 in 2025).

Beyond the meter, Avangrid builds goodwill through targeted local support. In 2025, the company supported over 80 local non-profit organizations across 20 states where it operates facilities. Through its Community Sponsorship Programme, Avangrid distributed over $200,000 to these groups, reinforcing its commitment to the immediate neighborhoods it serves. This is relationship building at the grassroots level.

Dedicated account management for large industrial/commercial clients.

For your largest energy users-the big industrial and commercial clients-the relationship model shifts to dedicated account management. These relationships focus on customized service, load management, and ensuring the high-capacity infrastructure meets their specific operational demands, which is critical given the overall grid strain.

Here's a quick look at some key customer-facing statistics as of late 2025:

Metric	Value (as of late 2025)	Business Segment/Context
Networks Customers Served	3.4 million	Electric and natural gas utilities in New York and New England
2025 Community Sponsorships Distributed	Over $200,000	Support for over 80 non-profits across 20 states
Digital Center of Excellence Success	Reduced hold times for customer calls	Reported improvement since 2023 formation
Projected Residential Rate Increase (Next 5 Yrs)	15% to 40%	Context for customer affordability and trust mandate

Finance: draft 13-week cash view by Friday.

Avangrid, Inc. (AGR) - Canvas Business Model: Channels

You're looking at how Avangrid, Inc. gets its product-reliable electricity and gas-to the end-user, which is a mix of regulated monopolies and direct energy sales. It's a massive physical footprint coupled with modern digital interfaces.

The core of Avangrid, Inc.'s delivery system is its physical infrastructure, which is heavily regulated in specific geographic areas. This forms the backbone for serving its utility customers.

Channel Component	Metric/Scale (As of late 2025 Data)	Scope/Detail
Regulated Utility Customers Served	More than 3.4 million customers	Served across eight electric and natural gas utilities in New York and New England.
Electric Transmission/Distribution Miles (Select Subsidiaries)	Approx. 33,165 miles (CMP Distribution)	Central Maine Power Company (CMP) operates this mileage in central and southern Maine.
Electric Distribution/Transmission Miles (Select Subsidiaries)	Approx. 44,000 miles (NYSEG Distribution)	New York State Electric & Gas Corporation (NYSEG) operates this mileage across more than 40% of upstate New York.
Gas Distribution Pipeline Miles (Select Subsidiaries)	Approx. 8,400 miles (RG&E)	Rochester Gas and Electric Corporation (RG&E) operates this mileage in its New York service area.
Infrastructure Investment Commitment	$18.5 billion planned investment	For U.S. electric and gas infrastructure through 2028, focusing on utility networks in New York and New England.
2025 Infrastructure Activity	Over 24,000 utility pole replacements	Completed by subsidiary utility companies across the Northeast so far in 2025 to boost reliability.

For its wholesale power business, Avangrid, Inc. uses direct, long-term contracts to secure revenue and manage portfolio risk. These Power Purchase Agreements (PPAs) are key for its renewable generation assets.

• Direct PPA with CPS Energy extended to 320 MW from the Peñascal wind farm.
• Signed a 57 MWdc (41 MWac) solar PPA with Amazon for the Oregon Trail Solar project.
• Executed a 120MW PPA with Portland General Electric (PGE) for the Tower Solar project.
• Owns and operates 80 energy generation facilities across the U.S., totaling 10.5 GW of power capacity.
• Currently has 10 projects supplying over 1.5 GW to data centers, with nearly 700 MW more under construction.

The regulated utilities use standard customer service channels to interact with the 3.4 million customers they serve. You see this in their digital offerings and their centralized operational oversight.

• Digital self-service portals and mobile applications are used for billing and outage reporting.
• A 24/7 National Control Center manages the real-time portfolio for the generation assets.

Finance: confirm the latest customer count for United Illuminating (UI) and The Southern Connecticut Gas Company (SCG) to refine the 3.4 million total by end of Q4 2025.

Avangrid, Inc. (AGR) - Canvas Business Model: Customer Segments

You're looking at the core groups Avangrid, Inc. (AGR) serves across its Networks and Power businesses as of late 2025. It's a mix of regulated utility customers and wholesale power purchasers.

The utility customer base in New York and New England is substantial, driven by the operations of its eight electric and natural gas utilities.

Customer Group Detail	Metric	Value
Total Utility Customers (NY & New England)	Customers Served	More than 3.4 million
Utility Customers (Alternative Figure)	Customers Served	More than 3.3 million
New York State Electric & Gas (NYSEG) Electricity Customers	Customers Served	Approximately 920,000
Rochester Gas and Electric (RG&E) Electricity Customers	Customers Served	Approximately 393,100

For large-scale power needs, Avangrid, Inc. is actively serving major energy consumers, particularly those in high-demand sectors like technology.

• Data centers and technology/AI companies are currently served by 10 projects, providing more than 1.5 GW of energy.
• An additional 5 projects, totaling nearly 700 MW, are under construction to meet further demand from these large off-takers.
• Avangrid, Inc. operates 80 energy generation facilities across the United States.

The Renewables fleet targets wholesale energy markets, selling power generated from its substantial asset base. The total generation capacity across all facilities is 10.5 GW.

Here's a look at the scale of the power generation portfolio that feeds these markets:

Renewables Fleet Metric	Value
Total Operating Generation Facilities	80
Total Generation Capacity (All Facilities)	10.5 GW
Electricity Generated (H1 2025)	Approximately 13,000 GWh
Wind Generation Capacity (Historical Benchmark)	5.6 GW
Percentage of Wind Capacity Contracted (Historical Benchmark)	Approximately 69%

Engagement with state and municipal entities centers on grid modernization and clean energy mandates, often involving significant capital investment or federal contract awards.

• Avangrid, Inc. has an announced investment plan of $20 billion in U.S. electrical grid infrastructure through 2030.
• A specific investment in Ithaca, NY, totals $41 million across five projects to improve local electrical grid capacity.
• The company secured a $425 million capacity contract from the U.S. Department of Energy for its Aroostook Renewable Project in Maine.

Avangrid, Inc. (AGR) - Canvas Business Model: Cost Structure

You're looking at the heavy investment required to keep the lights on and the gas flowing across New York and New England. The cost structure for Avangrid, Inc. (AGR) is dominated by the sheer scale of its physical assets. This isn't a software company; it's about steel, wires, and pipes that need constant upkeep and massive upgrades.

The most significant outlay is heavy capital expenditure (CapEx) for infrastructure. You see this commitment clearly in the latest plan: Avangrid, Inc. has announced plans to invest $18.5 billion in U.S. electric and gas infrastructure by 2028. This builds on prior commitments, like the $\mathbf{\$20 \text{ billion}}$ investment planned through 2030 to rebuild and strengthen critical infrastructure in the Northeast. This CapEx is designed to reinforce utility networks, expand capacity for things like data centers, and harden systems against severe weather, which helps avoid escalating storm restoration costs down the line.

Next up is procurement costs for equipment and services. This is where the infrastructure spending translates into direct supplier payments. Honestly, Avangrid, Inc. is a major domestic spender. They grew their investment with U.S. suppliers by 16% compared to 2023, hitting $4.3 billion spent with U.S. suppliers in 2024. They partner with over 7,000 suppliers across all 50 states to source American-made equipment for their utility and power generation operations.

The day-to-day running of the business involves substantial operating expenses. These cover everything from routine utility maintenance to the unpredictable costs of storm restoration and labor for their approximately 8,000 employees. Here's a quick look at how total operating expenses have trended, based on their reported financials (in millions USD):

Period Ending	Total Operating Expenses (Millions USD)	Fuel & Purchased Power (Millions USD, FY 2023)	Operations & Maintenance (Millions USD, FY 2023)
TTM Sep '24	$7,362	N/A	N/A
FY 2023	$7,356	$2,429	$3,095
FY 2022	$7,129	$2,456	$2,857

You also have to account for the cost of money. Given the massive $\mathbf{\$18.5 \text{ billion}}$ CapEx plan, interest expense on debt financing is a material line item. For instance, their Total Debt was reported at $\mathbf{\$12,965 \text{ million}}$ at one point, which carries a financing cost. Looking at the income statement, the Net Interest Expense was $\mathbf{-\$409 \text{ million}}$ for Fiscal Year 2023, rising to $\mathbf{-\$487 \text{ million}}$ for the Trailing Twelve Months ending September 2024. If interest rates climb, that number defintely gets bigger.

Finally, there are the costs associated with operating under state oversight. Regulatory compliance and rate case preparation expenses are ongoing. While I don't have a specific dollar amount for the compliance budget for late 2025, you know these costs are real because the company actively engages in advocacy, such as securing the New York Utility Corporation Securitization Act to resolve legacy storm debt exceeding $\mathbf{\$750 \text{ million}}$ for their NYSEG and RG&E customers. Furthermore, their utilities are subject to periodic rate reviews by commissions like the NYPSC, MPUC, PURA, and DPU, all of which involve significant administrative and legal preparation costs.

Here are the key cost drivers you need to track:

• Capital Intensity: $\mathbf{\$18.5 \text{ billion}}$ planned investment through 2028.
• Debt Servicing: Interest Expense trending toward $\mathbf{\$500 \text{ million}}$ annually.
• Supply Chain: $\mathbf{\$4.3 \text{ billion}}$ spent with U.S. suppliers in 2024.
• Operations: Total Operating Expenses near $\mathbf{\$7.4 \text{ billion}}$ recently.

Finance: draft 13-week cash view by Friday.

Avangrid, Inc. (AGR) - Canvas Business Model: Revenue Streams

You're looking at how Avangrid, Inc. (AGR) actually brings in the money, which is really the core of its business model, especially now that it's part of the Iberdrola Group following the May 2024 acquisition. The revenue streams are clearly split between its regulated utility operations and its growing renewables portfolio. Honestly, the regulated side provides the stability you want to see in a utility.

The primary, most predictable income comes from Regulated tariff revenue from the Networks business. This unit manages eight regulated electric and natural gas utilities serving customers across New York, Maine, Connecticut, and Massachusetts. Revenue here is based on approved rate plans, like the ones driving Networks segment earnings in New York and Maine, which contributed to a segment earnings of $152 million in the second quarter of 2024. You can expect this to be a steady flow, tied to the rate base and allowed returns.

For the forward-looking picture, the Estimated 2025 total revenue projected at nearly $8.90 billion is the number you should anchor to for planning purposes, even though the trailing twelve months revenue as of late 2024 was reported at $8.70 Billion USD. This projected growth reflects the combined strength of both segments moving into the new fiscal year.

The Renewables business drives revenue through Power sales revenue from the Renewables business via long-term PPAs (Power Purchase Agreements). Avangrid, Inc. targets having over 80% of its renewable capacity secured this way to limit exposure to volatile spot markets. As of September 30, 2024, about 77% of capacity was contracted under PPAs with an average term of 10 years, with another 9% hedged. This structure locks in cash flows for the long haul.

Beyond the contracted power, you also capture income from Wholesale market sales of generated electricity and renewable energy credits (RECs). This portion is more exposed to market fluctuations but can provide upside when power prices spike, as seen with some merchant price increases noted in the third quarter of 2024 results. For context on the scale, Avangrid's portfolio produced approximately 13,000 Gigawatt hours (GWh) of electricity in the first six months of 2025 alone, enough to power about 2.4 million U.S. homes.

Finally, there's Revenue from transmission services (e.g., NECEC project). The New England Clean Energy Connect (NECEC) project, a joint venture with Hydro-Quebec, is a major component here. While initial estimates suggested a $950 million investment, the total planned spend is now closer to $1.5 billion. This project is designed to generate revenue through Tariff Service Agreements (TSAs) with Central Maine Power (CMP) and Massachusetts utilities, providing capacity for 1,200 MW of clean hydropower. Older estimates suggested this could yield roughly $60 million a year in net income over its 20-year contract life.

Here's a quick look at some key operational metrics that feed these revenue streams, based on the latest available segment data:

Metric	Networks Business	Renewables Business (Q2 2024 Earnings)	Renewables Capacity Contracted (as of 9/30/2024)
Customer Base / Capacity	Over 3 million customers	10,037 megawatts (wind, solar, thermal)	77% under PPA
Financial Contribution (Earnings)	$152 million (Q2 2024)	$70 million (Q2 2024)	9% Hedged
Key Revenue Driver	Regulated rate plan execution	Strong resource performance and pricing	Average PPA term of 10 years

You should note that the Networks segment earnings in Q2 2024 were significantly up, reaching $152 million, compared to $85 million in net income for the entire company in Q2 2023. This highlights the importance of the regulated utility performance to the overall top line.

The Renewables segment also saw strong performance in the first half of 2024, with adjusted earnings of $165 million for the first half of 2024, driven by strong balancing resource performance and increased pricing. Finance: draft 13-week cash view by Friday.